Proposal #24 - Jeweler 2.0 with cJEWEL

Summary

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cJEWEL is a new fee-sharing and governance token that will replace the current Jeweler model which uses xJEWEL and xCRYSTAL. Players will receive soulbound cJEWEL tokens for voluntarily locking their JEWEL for a selected period of time, and will earn claimable JEWEL rewards based on the amount of cJEWEL held.

cJEWEL is the name for the governance token in Crystalvale, and sJEWEL is the equivalent for Serendale. (cJEWEL and sJEWEL are functionally the same)

Key differences from xJEWEL:

• Users must lock up JEWEL in the Jeweler contract for a period of time of their * choice (between 7 and 1095 days) in order to receive cJEWEL
• Jeweler fee sharing will work more like how LP staking works in the gardens (claim rewards separately from interacting with cJEWEL)
• cJEWEL can be used to activate Power-Ups such as experience buffs (feature to come after cJEWEL launch)

Acquiring cJEWEL & Locking Mechanism

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• Players may lock their JEWEL in the Jeweler contract for any length of time between 7 days and 1095 days (3 years).
• In exchange, they will receive an amount of cJEWEL relative to the amount locked and the duration of time locked:
  • cJEWELearned = JEWELdeposited * (daysLocked / 1095)
  • Examples:
  • 10000 JEWEL * (7 days / 1095) = ~63.93 cJEWEL
  • 500 JEWEL * (365 days / 1095) = ~166.67 cJEWEL
  • 300 JEWEL * (1095 / 1095) = 300 cJEWEL
• Players can receive more cJEWEL without depositing more JEWEL simply by extending the locking period. They can also add more JEWEL to what is already locked (using the same remaining time locked) to receive more cJEWEL.
• Once the locking period has ended, players can redeem their cJEWEL tokens to receive their staked JEWEL, or extend it to receive more cJEWEL.
• Players may only withdraw their entire JEWEL balance at once. If a withdrawal takes place prior to the end of the locking period, the principal will incur a 50% early withdrawal penalty, which will be burned.

cJEWEL Rewards

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• A portion of in-game fees, LP withdrawal fees, and other future fees will be directed to a new Fee Collector contract, which will sell them for JEWEL as needed.
• These fees will accrue for the player according to their share of the total cJEWEL in circulation, and will be claimable at any time, similar to how the Gardens work.
• Claiming can be done manually, and will also happen automatically any time the player deposits more JEWEL, extends their locking time, or withdraws their JEWEL balance.

Additional Benefits

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• In addition to the fees earned, cJEWEL will serve as the new DeFi Kingdoms Governance Token. The locking mechanism encourages staking into the protocol, and allows those who want to support the project for the long term to have more of a say and receive a larger share of the rewards.
• New mechanisms built into the contract will help facilitate on-chain governance votes with the help of Governor and Timelock contracts, furthering decentralization.
• Snapshots of cJEWEL holders will be used for future airdrops. As with governance, this prevents third-parties from gaming votes and snapshots by buying/selling large amounts of JEWEL right before/after snapshots. We anticipate having regular and frequent snapshots and airdrops via this mechanism.
• Holders will be eligible for in-game bonuses, power-ups, and rewards, such as: bonuses to Hero experience, reduced in-game fees, and access to premium features.

For more information about the new cJEWEL mechanics, please give our medium article a read: https://medium.com/defi-kingdoms-official/jeweler-2-0-8e71fcb780f7

Proposal

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We propose that xJEWEL be replaced with cJEWEL (and sJEWEL in the future for Serendale 2.0), a new governance token that will offer additional functionality and security to the protocol, make it possible to do on-chain governance, and provide rewards for the holders.